CardioTech International Reports First Quarter Fiscal 2009 Results.AdvanSource Biomaterials Brand Launched in Quarter Reminder: Conference Call Today at 2:30 ET, Dial In 866-818-1223 (ID#1266354) WILMINGTON, Mass. -- CardioTech International, Inc. (AMEX AMEX See: American Stock Exchange : CTE (Coefficient of Thermal Expansion) The difference between the way two materials expand when heat is applied. This is very critical when chips are mounted to printed circuit boards, because the silicon chip expands at a different rate than the plastic board. ), a leading developer and manufacturer of advanced biomaterials for a broad range of medical devices, today reported financial results for the fiscal first quarter ended June 30, 2008. The Company's financial condition and results of operations, which are based on the Company's continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , exclude the financial condition and results of Gish Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. , Inc. and Catheter and Disposables Technology, Inc. ("CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT "), both former wholly-owned subsidiaries of the Company, which were sold during the fiscal year ended March 31, 2008. Fiscal First Quarter & Recent Highlights: * In June 2008, the Company launched its AdvanSource Biomaterials brand and is receiving a positive response to its initial marketing effort; and * The Company received approval in July for an export license for its 4mm CardioPass[TM] synthetic coronary bypass coronary bypass Surgical treatment for coronary heart disease to relieve angina pectoris and prevent heart attacks. It became widely used in the 1960s. One or more blood vessels—usually an artery in the chest or a vein from the leg—are transplanted to create graft following necessary Ministry of Health approval for the second size graft and a second site for its European clinical trial for CardioPass[TM]. Financial Results For the fiscal first quarter ended June 30, 2008, revenues were $874,000 as compared to $852,000 in the year-earlier period. Net loss and net loss from continuing operations during the fiscal first quarter were $559,000, or $0.03 per diluted share. These results compare to a year-earlier period net loss of $1.8 million, or $0.09 per diluted share, comprised of net loss from continuing operations of $95,000, or $0.00 per diluted share and a $1.7 million loss, or $0.09 per diluted share, from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. as a result of the sale of Gish and CDT. The overall increase in revenues during the three months ended June 30, 2008 was due in part to an increase in royalties and development fees, which rose to $561,000, a 13% increase from $498,000 in the year-earlier period, partially offset by a decrease in product sales. Gross margin declined during the fiscal first quarter ended June 30, 2008 due to scrap incurred in the production of biomaterials, increased staffing, and other costs aimed at improving the Company's manufacturing processes and quality systems. Selling, general and administrative expenses increased by 68% to $924,000 during the fiscal first quarter ended June 30, 2008 attributable, in part, to incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. professional fees, the appointment of the Company's first-time Global Sales Director for materials science materials science Study of the properties of solid materials and how those properties are determined by the material's composition and structure, both macroscopic and microscopic. and significant expansion of marketing and branding initiatives. During the past fiscal year, the Company made a substantial investment in infrastructure and systems improvements. The Company's cash and cash equivalents balance at June 30, 2008 was $5.6 million and working capital was $5.7 million. Commenting on CardioTech's performance, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Michael Adams
Michael Adams (born November 17, 1971 in Truro, Cornwall, England) is an International Grandmaster of chess. said: "The operating results during this past quarter reflect our investment in both a comprehensive marketing launch for our AdvanSource Biomaterials brand and application of resources to improve the quality systems and efficiency of our manufacturing processes. We expect to benefit from the stream of new inquiries generated by our initial marketing effort at a major medical device industry trade show in early June." "Deployment of working capital is focused on gaining broader recognition for our advanced biomaterials to existing and potential customers. We are proceeding at two sites with two graft sizes in the European clinical trial of CardioPass[TM], our synthetic coronary artery bypass graft coronary artery bypass graft n. Abbr. CABG A surgical procedure in which a section of vein or other conduit is grafted between the aorta and a coronary artery below the region of an obstruction in that artery. . CardioPass[TM] is a breakthrough device that reflects CardioTech's unique strength in polymer science Polymer science or macromolecular science is the subfield of materials science concerned with polymers, primarily synthetic polymers such as plastics. The field of polymer science includes researchers in multiple disciplines including chemistry, physics, and engineering. ," Mr. Adams concluded. CONFERENCE CALL & REPLAY INFORMATION CardioTech will host a conference call with investors at 2:30 p.m. ET on Wednesday, August 13 2008 to discuss its fiscal first quarter 2009 financial results. Participants should dial-in (866) 818-1223 Conference ID# 1266354 or (703) 639-1376 outside the U.S. Please dial-in 10 minutes before the call is scheduled to begin. A replay will be available approximately two hours after the conference call ends for a period of two weeks at 888-266-2081 reference # 1266354 or 703-925-2533 outside the U.S. About CardioTech International: Through its newly formed AdvanSource Biomaterials Corporation subsidiary, CardioTech develops advanced polymer materials which provide critical characteristics in the design and development of medical devices. The Company's biomaterials are used in devices that are designed for treating a broad range of disease states and anatomical sites. The Company's business model leverages its proprietary materials science technology and manufacturing expertise in order to expand its product sales and royalty and license fee income. CardioTech is conducting a clinical trial for regulatory approval in Europe for its CardioPass[TM] synthetic coronary bypass graft. More information about CardioTech is available at its new website: www.advbiomaterials.com Forward-Looking Statements: CardioTech believes that this press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause results to differ materially from the forward-looking statements. For further information on such risks and uncertainties, you are encouraged to review CardioTech's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2008. CardioTech assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law. [TABLE OMITTED] [TABLE OMITTED] |
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